Newsletter
CAP ON DEPRECIABLE COST OF HIRE CARS RAISED TO NT$5 MILLION
Article 51-1 of the Income Tax Act provides that the actual cost of a new small passenger vehicle purchased by a profit-seeking enterprise and depreciated according to the provisions of Arti-cle 50 Paragraph 1 must not exceed a limit set by the Ministry of Finance. According to a tax ruling dated 22 July 2004, the MOF raised this limit from NT$3.5 million to NT$5 million in the case of a car purchased for business use by a profit-seeking enterprise engaged in car rental business.